Decentralized Finance (DeFi) is disrupting the global financial market in multiple ways. It lets its participants reclaim control of their assets, eliminating the need for intermediaries. By getting rid of traditional financial institutions DeFi allows for more efficient asset management while enabling greater transparency and security. But to actually build a DeFi product that people will love to use is not a piece of cake. Over the last few years, we’ve seen many failed DeFi projects. Today, let’s look at those who overcame the challenges to see what they have in common. Here’s a list of 7 DeFi projects to watch in 2023 and beyond.

The DeFi space has been rapidly evolving, bringing revolutionary changes to the traditional financial landscape. We’re halfway through 2023, and the DeFi sector continues to gain momentum, with new projects emerging and existing ones expanding their offerings. In this blog post, we will explore ten DeFi projects that have shown immense potential and promise to shape the future of finance. Whether you're a DeFi enthusiast or an investor seeking opportunities in this thriving market, keep an eye on these projects as they make waves in 2023 and beyond.

Top 7 projects to watch in the upcoming future

1. Compound - a permissionless DeFi protocol that allows lenders to learn interest from their crypto assets

Compound is an Ethereum-based lending protocol that lets users earn interest on their cryptocurrency holdings. In 2022 one of their projects called Compound Treasury became the first institutional DeFi offering rated by a major credit rating agency (with a B- rating). Compound Treasury is a crypto cash management solution for institutions. According to their materials accredited investors can earn 4% on USD and USDC with daily liquidity. 

2. Synthetix - a decentralized platform for trading synthetic assets

What are synthetic assets? Also known as “synths”, synthetic assets are tokenized representations of real-world assets designed to mimic the price movements of various assets without requiring direct ownership of the underlying resources. In true DAO fashion, Synthetix relies on a decentralized governance model, where their token (SNX) holders have the ability to participate in the decision-making process through on-chain voting.

3. Stargate - making cross-chain liquidity transfers a reality

Stargate Finance is a well-trusted cross-chain bridge enabling asset transfers between a variety of Layer 1 and Layer 2 networks. Decentralized finance users can swap native assets cross-chain within a single transaction. As an example, users can seamlessly trade USDC on Ethereum for ESDT on the BNB network. Stargate has been very successful so far, gaining a lot of recognition and praise within the industry. It’s definitely worth keeping an eye out for its future endeavors!

4. Lido - a multi-platform staking solution

Introduced in late 2020, Lido allows its users to access the benefits of staking their crypto assets without fully locking their tokens. According to Bitstamp, throughout 2022 and into 2023, approximately 30% of all ETH were staked through Lido, which returns stETH to users as a liquid token. Lido protocols are governed by the LDO token holders through the Lido DAO. 

5. Hadouken Finance - bringing top class DeFi products to the Nervos ecosystem

Hadouken is a DEX platform on Godwoken (which is a Layer 2 of the Nervos blockchain). It offers a whole array of products for portfolio management, trading, lending, and borrowing. They created a multibridge that allows for bringing funds onto Hadouken from Ethereum, Avalanche, BNB, Polygon, Solana, and more. At Rumble FIsh we’re happy of being a part of the Hadouken story, as we were a team responsible for developing the stablecoin swapping solution.

6. Frax Finance - a DeFi ecosystem for stablecoin trading

The Frax Protocol has been issuing three stablecoins so far - FRAX (pegged to the US dollar), FPI (Frax Price Index, which is the first stablecoin pegged to CPI - a basket of consumer goods), and frxETH (Frax Ether - pegged to ETH). Frax also develops an entire infrastructure of subprotocols that integrate their stablecoins. Their FraxSwap for example, is the first AMM with an embedded TWAMM (time-weighted average market maker) which allows for conducting big trades over long periods of time trustlessly. 

7. Nexus Mutual - an insurance alternative for crypto

Nexus Mutual stands as a pioneering DeFi insurance platform, positioned as a promising contender in the crypto space's insurance sector. By offering on-chain protection, it caters to investors, safeguarding them against a diverse range of risks.  The platform demonstrates its commitment to security through certified audits conducted by top-tier cybersecurity firms, instilling confidence in the integrity of its smart contracts. Anticipating further growth, the company is actively developing additional products scheduled to launch in 2024. Nexus Mutual’s development is definitely the one to follow!

Conclusion

From enhancing interoperability to offering secure lending and crypto insurance options, these innovative DeFi companies are shaping the financial landscape of the future. Investors, users, and enthusiasts alike should keep a close eye on these top 7 DeFi companies as they continue to make strides in decentralized finance and beyond.